Stock Analysis on Net

Microsoft Corp. (NASDAQ:MSFT)

$24.99

Enterprise Value (EV)

Microsoft Excel

Current Enterprise Value (EV)

Microsoft Corp., current enterprise value calculation

Microsoft Excel
Current share price (P)
No. shares of common stock outstanding
US$ in millions
Common equity (market value)1
Total equity
Add: Short-term debt (per books)
Add: Current portion of long-term debt (per books)
Add: Current finance lease liabilities (per books)
Add: Long-term debt, excluding current portion (per books)
Add: Long-term finance lease liabilities (per books)
Total equity and debt
Less: Cash and cash equivalents
Less: Short-term investments
Enterprise value (EV)

Based on: 10-K (reporting date: 2024-06-30).

1 Common equity (market value) = Share price × No. shares of common stock outstanding
= ×


Historical Enterprise Value (EV)

Microsoft Corp., EV calculation

Microsoft Excel
Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019
Share price1, 2
No. shares of common stock outstanding1
US$ in millions
Common equity (market value)3
Total equity
Add: Short-term debt (book value)
Add: Current portion of long-term debt (book value)
Add: Current finance lease liabilities (book value)
Add: Long-term debt, excluding current portion (book value)
Add: Long-term finance lease liabilities (book value)
Total equity and debt
Less: Cash and cash equivalents
Less: Short-term investments
Enterprise value (EV)

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).

1 Data adjusted for splits and stock dividends.

2 Closing price as at the filing date of Microsoft Corp. Annual Report.

3 2024 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= ×

Equity Trends
The common equity and total equity values show a consistent upward trend over the observed period from June 30, 2019, to June 30, 2024. The equity increased significantly from approximately 1,054,145 million USD in 2019 to 3,143,581 million USD in 2024. This reflects a strong growth trajectory in shareholders' equity, with notable jumps particularly between 2019 to 2021 and again from 2022 to 2024.
Total Equity and Debt
The total equity and debt values also follow a similar pattern of increase, rising from 1,132,897 million USD in 2019 to 3,222,356 million USD in 2024. The increase mirrors that of total equity, though the difference between total equity and this combined figure suggests that debt levels have remained stable or grown modestly relative to equity over time.
Enterprise Value (EV)
The enterprise value has steadily grown throughout the years, starting at 999,078 million USD in 2019 and reaching 3,146,813 million USD in 2024. This growth aligns closely with the increases in equity and total equity and debt, indicating a rising overall market valuation and capital structure enhancement.
Overall Observations
The financial data indicates robust growth in both equity and enterprise value, reflecting increased market confidence, expanded capital base, and potentially improved operational and financial performance. The proportions between total equity, combined equity and debt, and EV suggest a balanced approach to financing, with no apparent excessive leverage. The accelerating increase particularly after 2021 may indicate strategic initiatives or market conditions fostering substantial value creation.